Bank says irregularities in trading positions led to ‘single-digit millions of pounds’ losses’
Bailed-out Lloyds Banking Group has admitted it sacked a trader last year over irregularities in his trading positions which led to “single-digit millions of pounds” losses. The bank did not name the former employee but it was reported that Franck Kornmann was dismissed in February 2012 after an international investigation. Lloyds said the Financial Services Authority, which has not taken any action, was notified.
“This investigation was prompted by our own internal procedures which picked up certain irregularities that conflicted with our policies and procedures,” a Lloyds spokesman said. Kornmann was not available for comment. Another employee was reported to have also been dismissed.
“Trading in this area, which began in 2008, ceased in 2011 as it did not match the group’s strategy of focusing on the UK. The position generated positive results in 2009 and 2010 and negative results in 2011 and 2012, with both 2008 and 2013 to date being flat. Across the period as a whole, the net outcome is a negative result in the low, single-digit millions of pounds,” Lloyds said.